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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (26489)	6/21/1999 12:27:00 PM
From: Techplayer	Read Replies (1) \| Respond to of 77400

Gary, I do not disagree with all of your arguments, though ATM is still here for several more years, the 5ess will be here for several more years and QoS still has a way to go to achieve the 5 9's of efficiency. I am also quite comfortable with LU's market share in the optical and wireless spaces. LU's margins are doing just fine. As LU continues to spin off less profitable pieces of their company and continues to define itself as a commercial business, overhead will continue to be trimmed. (like the enterprise sales group being spun off into it's own entity). As a LU shareholder, I am very happy with the present business model. As a CSCO shareholder, I am very happy with the business model. I truly believe that CSCO will continue to have difficulty in the LU turf wars. As long as enterprise margins stay where they are, these companies are both going to do well. My feeling is that margins in the core are far less susceptible to price wars and diminishing returns over time. Regarding LU and Brazil, I read recently that the Brazilean government wants local companies to do business with local companies. By owning a presence in Brazil at low $, LU gets a strong foothold in the fastest growing market in SA. The rest of South America feeds off of Brazil as well, extending "potential" business into several other emerging markets. From a recent article; Some of Lucent's other major wins in Brazil recently have included agreements with Embratel, which is owned by MCI WorldCom, to provide billing software from Kenan Systems; agreements with the cellular companies of Grupo Telefonica to build CDMA networks in the states of Rio de Janeiro and Sergipe for about 1.5 million subscribers; contracts worth US$330 million with Telesp Celular, which is owned by Portugal Telecom, to build CDMA networks in the metropolitan area and interior of Sao Paulo, and to provide two million voice mail boxes for the network; a contract worth approximately US$36 million to supply TDMA wireless equipment to Tele Celular Sul, owned by Telecom Italia Mobile (TIM) in the state of Parana. In addition, Lucent has made multi-million dollar sales of call center equipment and software solutions based on its DEFINITY® platform to the top cellular operators in Brazil.Zetax Tecnologia, which has about 200 employees and is headquartered in Valinhos, develops, markets and supplies telecommunications infrastructure equipment to network operators, including public and private operators, emerging service providers and specialized operators such as public telephony providers. Products include digital central office switching equipment and special technology such as analog to digital conversion equipment. ''We welcome Zetax and Batik into the Lucent family,'' said Medeiros. ''Both companies have valuable resources that will help Lucent expand its business with fixed line operators in Brazil and support the deployment of equipment for Telemar. These acquisitions are a continuation of Lucent's commitment to growth in Brazil, which is demonstrated by all our recent wins.'' ''The acquisition of local switching companies in Brazil benefits Lucent by providing established infrastructure, technology and intellectual property,'' said Frank D'Amelio, vice president of product management and marketing for Lucent's Switching and Access Solutions Group. He added that Zetax would provide Lucent with already established switching technology centers in Brazil and allow Lucent to leverage Brazilian technology into the Lucent 5ESS Switch portfolio. ''Lucent will coordinate with Zetax and Batik to evolve Lucent's switching and access technology to better serve the Brazilian market,'' said Jose Roberto Campos, interim president of Lucent Technologies in Brazil, adding that both companies will become part of Lucent's Switching and Access Solutions Group." Good luck, Brian